The Brazilian Economy Minister, Fernando Haddad, promised at the World Economic Forum in Davos to end the public deficit of the State within a maximum period of two years.
“We intend to return to the income and expenses of the pre-crisis level of the pandemic, which is 18.7% [of GDP] in the federal government; if we achieve that in two years, we can end the deficit, and that will be easier if we pass the tax reform,” Haddad explained.
However, the budget approved by the National Congress at the request of the Government of Jair Bolsonaro contemplates a hole in the public accounts of R$231.5 billion (almost US$45.3 billion).
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The Brazilian Economy Minister, Fernando Haddad
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Last week, the economic team of the new executive of Lula da Silva announced measures to reduce the deficit and contain the increase in public debt.
It is expected that with these measures the government accounts will register a hole of R$100 billion (more than US$19.5 billion) in 2023, the equivalent of approximately 1% of GDP.
